Market Overview
The Global "Personal Care Ingredients Market" is expected to grow at a CAGR of 5.44% during the forecast period (2024-2031).
Personal care ingredients are chemicals that are used in the manufacture of personal care products such as skin creams, toothpaste, hair oils, conditioners, shampoos, cosmetic products, and others.
Market Summary
| Metrics | Details |
| CAGR | 5.44% |
| Market Size | 2024-2031 |
| Market Estimation Forecast Period | 2024-2031 |
| Revenue Units | Value (US$ Mn) |
| Segments Covered | Product Type, Application, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Largest Region | Asia-Pacific |
| Fastest Growing Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
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Market Dynamics
Drivers:
Increasing demands for personal care products are expected to boost the market.
The increasing demand for personal care products such as skincare creams, hair shampoos, hair conditioners, skin creams, toothpaste, and sunscreens are driving the market growth. Growing awareness about personal hygiene and good looks is motivating people to get more of these personal care products. Advertisements nowadays before actually displaying a product related to hygiene or personal care talk about the consequences of not using the product which makes the consumers aware of the necessity of buying them. Global revenue of digital advertising was about 330 billion US dollars in 2019 and is expected to increase to approximately 490 billion US dollars by 2025. According to data, a total of almost 730 million units of toothpaste of various companies were sold in the United States in 2020, and this number is expected to increase in the future. Data provided by Statista states that the market value of beauty and personal care products in Western Europe reached approximately 84.3 billion euros in 2018, increased by 5 approximately million euros 2020, almost a 1% increase in market value.
The personal care market is expanding due to increased awareness of personal hygiene and the availability of products on e-commerce platforms. Even social media has a positive impact on changing consumer purchasing habits for personal hygiene products. This is why the personal care ingredients market will grow during the forecasting period.
Product innovations in the personal care market will drive the market for personal care ingredients.
The need for product innovations is a must. Due to their busy lifestyle, consumers' preferences for a single product with improved functionality and multiple benefits such as anti-aging, cleansing, moisturizing, anti-oxidant, and UV protection from a single product are changing. This is increasing the use of multifunctional ingredients in the production of such products. Customers, for example, want sun care protection features in their skincare products, as well as protection against UV rays. This is increasing the demand for UV filters. For example, Clariant AG launched a new personal care ingredient, Prenylium, in January 2020, which is a sustainably sourced root-powered active ingredient for premium anti-aging skincare. It is a one-of-a-kind Morus alba tree root extract that is effective in protecting the skin matrix some from degradation caused by time and UV exposure. Companies are very interested in showing products that are individually tailored because today's consumers are deeply invested in their personal genomics. Customers can now select from a variety of solution-based kits or receive formulations tailored from data-driven platforms. They can even select the type of packaging for branded products with personalized labels. This customization fosters brand loyalty, boosts customer satisfaction, and allows for a powerful data collection apparatus.
Restraints:
The factors restraining the growth of the global Personal Care Ingredients market are the high manufacturing costs of these products and the unhealthy side effects that come with their use.
COVID-19 Impact Analysis
The COVID-19 pandemic has greatly impacted industries all over the world, including the personal care ingredients market. Consumer purchasing habits have shifted dramatically since the impact of COVID-19, and nowhere is this more evident than in the personal hygiene and sanitary products space. Most people now carry multiple bottles of hand sanitizer with them, and many consumers are becoming more health-conscious and taking preventive measures against disease control. Due to the travel restrictions and social distancing measures implemented by countries on a global scale, and local too, where people have to now work from home, consumers have been exposed a lot to social media platforms and advertisements that have made them aware of the need to use personal care products, and this is expected to boost the demands for the ingredients that make up these products.
Market Segment Analysis
The Global Personal Care Ingredients market is segmented into Type, Application, and Region.
Based on Type
The global Personal Care Ingredients Market by type is segmented into Emulsifiers, Emollients, Active Ingredients, Rheology Control Agents, Conditioning Polymers, and Others.
Based on Application
The global Personal Care Ingredients market by Application is segmented into Skincare, Haircare, Oral Care, cosmetics, Toiletries, and Others.
Because of changing lifestyles and rising consumer spending on personal care products, the skincare segment dominated the global personal care ingredients market, particularly in developing countries such as India, China, Brazil, and South Africa, among others. People are starting to use skincare at a younger age in order to delay the signs of aging, while the number of older consumers is declining. In 2018, Skincare was the most popular category, accounting for approximately 39% of the global market. Haircare products accounted for another 21%, while make-up accounted for 19%. Skincare is expected to remain the most profitable product category, with an estimated increase in the market value of 20.1 billion US dollars between 2014 and 2019. Face cleansers, toners and mists, moisturizers, skin whitening cream, face masks, and other products are included in the Skin Care range.
Due to increased consumer concern about the importance and benefits of oral hygiene over the last decade, the oral care segment is expected to grow at a positive rate. Toothpaste, mouth fresheners, tooth powders, mouthwashes, and other products for keeping the mouth and teeth clean are examples of oral care products. Cocamidopropyl Betaine (CAPB) and Sodium Lauryl Sulfate are used as surfactants. The toothpaste market in the United Kingdom was worth approximately 540 million British pounds in December 2019, according to data, and is expected to grow further during the forecast period. In 2020, India produced nearly 141000 metric tons of toothpaste.
Market Geographical Share
The global Personal Care Ingredients market by Region is segmented into North America, South America, Europe, Asia-Pacific, and Middle East & Africa
Asia-Pacific dominated the global personal care ingredients market, owing to the availability of low-cost personal care products, which are increasing the demand for personal care ingredients. Rising urbanization, disposable income, and purchasing power are factors driving up demand for personal care ingredients in the Asia-Pacific region. In 2018, the region was the most dominant market holding over 40% of the overall share. The beauty and personal care market in India was valued at over 11 billion US Dollars in 2015 and increased to approximately 20 billion US Dollars, almost double in size, in 2020, according to data. The demand for these products is expected to increase further due to the growing popularity of online e-commerce platforms as well as walk-in stores.
The North American market for personal care ingredients is expected to grow at the highest CAGR during the forecast period. According to data, the US skincare market is expected to be valued at 190 billion US dollars by the end of 2025. The personal care market is also boosted by digital advertising techniques implemented by countries. For example, in 2019, USA was the largest digital advertising market valued over 130 billion US Dollars, which is expected to grow even further during the forecast period. This will boost the demand for personal care ingredients as many skincare, cosmetics, and hair care companies will focus on targeting their consumers with personalized ads online as well as on Televisions. Moreover, Lucrative growth opportunities in Mexico and the United States are enticing several market players to enter the market and invest in personal care ingredient research and development.
Companies and Competitive Landscape
Because of the presence of small and medium-sized market players, the global personal care ingredients market is fragmented and competitive. The market is dominated by Ashland Global Holdings Inc., BASF SE, Croda International Plc., Evonik Industries AG, Akzo Nobel N.V., Clariant AG, and The Dow Chemical Company.
Companies are adopting various strategies to maintain competitiveness in the market through product launches and innovations, mergers, and acquisitions. For example, Cargill Beauty expanded its distribution agreement with Univar in August 2019 to cover the Latin American market (LATAM). This would give companies in Latin America full access to Cargill's nature-derived, label-friendly, and highly functional ingredients for the South American personal care market.
Company Profile: Clariant AG
Overview: Clariant AG is a Swiss Multinational specialties company. It was founded on 26 June 1995, breaking away from Sandoz.
Product Portfolio: The company specializes in the production of care chemicals, natural resources, catalysis, plastics, and coatings. It manufactures and sells specialty chemicals to various global markets.
Recent Developments:
1) Clariant announced in June 2021 that its low-carbon footprint Glucamide surfactants, GlucoTain® and GlucoPure®, had won an American Chemistry Council (ACC) Sustainability Leadership Award in the category Product Safety, Innovation, and Transparency.
2) Clariant AG announced the release of BeautyForward No. 5 in May 2021, with the goal of delivering inspirational formulations tailored to new social norms. It ranged from mask-wearing skincare and moisturizing hand cleansers to relaxing formulations that highlighted the overlap between skincare and self-care.
Why Purchase the Report?
- Visualize the composition of the global personal care ingredients market products in terms of product type and application highlighting the critical commercial assets and players.
- Identify commercial opportunities in the global personal care ingredients market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of global personal care ingredients market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
**The global personal care ingredients report will provide access to approximately 53 market data tables, 44 figures, and 200 pages
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